Stella McCartney buys back LVMH stake in her eponymous fashion brand
Stella McCartney has bought back LVMH’s 49 per cent stake in her fashion brand, which the luxury giant has held for five years.
McCartney will continue to advise LVMH chief Bernard Arnault and the group’s executive team on sustainability issues as global ambassador on sustainability.
“This new chapter for Stella McCartney reflects her desire to write a new page in her story independently, after working closely with the group to strengthen the fundamentals and governance of her house,” LVMH and Stella McCartney said in a statement on Monday.
LVMH originally acquired the minority stake in 2019, one year after McCartney purchased Kering’s 50 per cent stake in her brand.
Kering and McCartney, who is the daughter of the Beatles’ Paul McCartney, had worked together for 17 years, with Gucci – now a division of Kering – helping to launch the brand in 2001.
The value of the transaction has not been disclosed.
Some have speculated that LVMH may be looking to offload assets amid a slowdown in the wider luxury market.
LVMH is the largest luxury conglomerate in the world – it owns a huge variety of brands including Givenchy, Celine, Fendi and Dior, as well as champagne brands Dom Pérignon and Krug.
It has already sold the streetwear fashion brand Off-White as well as its stake in Cruise Line Holdings.
The luxury market slowdown has been driven by a slump in both Chinese and European sales as both areas grapple with their own demand issues.
However, there have been signs that the market could be on the up this year as recent festive trading results for both Burberry and Richemont brought some cheer to the sector.
LVMH shares nudged down 0.64 per cent today.
Stella McCartney Ltd has not yet filed its accounts for 2023 with Companies House.
For 2022, the brand reported a turnover of £40m and a pre-tax loss of £10m.